17 minutes agoShareSaveAdd as preferred on GoogleFrancisco VelasquezBusiness reporter
Getty ImagesA US federal judge has temporarily blocked the proposed $110bn (£85bn) merger between media giants Paramount Skydance and Warner Bros Discovery.
The decision follows a lawsuit brought by a coalition of 12 US states, including California and New York, aiming to halt the deal over concerns it would stifle competition and raise consumer prices.
Prosecutors representing the states said merging two major studios cuts would cause “substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide”.
In response, the media giants argued that the states had misread the market and that merging would improve streaming efficiency.
US district judge Araceli Martínez-Olguín issued the temporary restraining order on Monday following legals arguments heard last week.
Under the 14-day injunction, neither company can finalise the deal or start joining the businesseses together.
In her ruling, the judge noted that the state coalition raised “serious questions” regarding the deal’s impact on movie distribution.
Combining Paramount and Warner Bros would end a century of fierce rivalry between two of Hollywood’s biggest hitmakers.
Between them, they own legendary franchises like Harry Potter, Batman, Mission: Impossible, and Top Gun, as well as TV channels CNN, MTV and Nickelodeon.
If the deal does end up going ahead, the new company would account for over a quarter of major film releases.
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